Flipkart has bought back its logistics business from WS Retail Services Pvt. Ltd, the largest seller on the e-commerce platform.
Flipkart’s logistics arm was moved to WS Retail in 2012 (due to FDI issues) and now has has been bought back through a new entity called Instakart Services Pvt Ltd.In July, Instakart received Rs.127 crore from Klick2shop Logistics Services International Pte.
Interestingly, Flipkart founders had created WS Retail in 2009 as a seller on its site but both the founders quit the board after Indian regualtory bodies began investigation with WS Retail and Flipkart’s business. The Bansals then sold their stakes to former OnMobile Global Ltd chief operating officer Rajeev Kuchhal.
Later, two of Flipkart’s early employees, Sujeet Kumar and Tapas Rudrapatna, headed the business at WS Retail with roughly 46pc stake in WS Retail. But earlier this year, Kumar had quit the company.
Post acquisition WS Retail will continue with its trading business. [source]